La Puente Mortgage FAQs: Your Local Homebuying Questions Answered

FHA loans accept 580 credit scores with 3.5% down. Conventional loans typically require 620 minimum, though some portfolio lenders go lower for strong compensating factors.

FHA requires 3.5% down, conventional loans allow 3% for first-time buyers. Investment properties need 15-25% depending on the loan program and property type.

Most purchase loans close in 21-30 days if you're pre-approved and the appraisal comes back clean. Refinances usually take 25-35 days depending on lender workload.

Yes. Bank statement loans use 12-24 months of deposits instead of tax returns. We also offer profit and loss statement programs for borrowers with shorter business history.

Not always. Bank statement loans, 1099 loans, and asset depletion programs skip tax returns entirely. W-2 borrowers typically need two years of returns.

Bring two recent pay stubs, two months of bank statements, two years of W-2s, and photo ID. Self-employed borrowers need 12-24 months of bank statements or tax returns.

Market conditions shift monthly across Los Angeles County. Call us for current data—we track active listings and days-on-market trends daily in this area.

Areas near Hacienda Heights and closer to the 60 freeway see steady buyer interest. We analyze each block based on comparable sales and school boundaries.

FHA 203(k) loans cover purchase price plus renovation costs in one loan. The property must meet minimum safety standards before you can move in.

FHA allows lower credit scores and smaller down payments but requires mortgage insurance for the loan's life. Conventional loans drop PMI at 80% loan-to-value.

If you're active duty, veteran, or qualifying spouse, VA loans require no down payment and no monthly mortgage insurance. Funding fees vary by service history.

Yes, FHA loans work on 2-4 unit properties if you occupy one unit as your primary residence. Down payment stays at 3.5% regardless of unit count.

Expect 2-3% of the purchase price for lender fees, title, escrow, and prepaid items. Rates vary by borrower profile and market conditions.

Sellers can contribute up to 3% on conventional loans and 6% on FHA loans. Your agent negotiates this as part of the purchase agreement.

Private mortgage insurance protects the lender when you put down less than 20%. Avoid it with 20% down, piggyback loans, or lender-paid MI options.

Only if you're keeping the loan past the break-even point—usually 4-6 years. Most La Puente buyers refinance or move before points pay off.

Yes, ITIN loans work for foreign nationals and non-residents. You'll need 15-25% down and rates run slightly higher than conventional programs.

Debt Service Coverage Ratio loans qualify based on rental income, not personal income. Investors use these to buy cash-flowing properties without tax return verification.

DSCR loans qualify you based on the property's rent, not your W-2 or tax returns. The rental income must cover the mortgage payment by 1.0x to 1.25x.

Lenders analyze 12-24 months of business or personal bank deposits instead of tax returns. Self-employed borrowers use these when write-offs lower taxable income.

ARMs start with a fixed rate for 3, 5, 7, or 10 years, then adjust annually based on an index. Initial rates run lower than 30-year fixed mortgages.

15-year loans save thousands in interest but nearly double your payment. Most La Puente buyers pick 30-year terms for lower payments and flexibility.

FHA Streamline and VA IRRRL programs skip appraisals entirely. Conventional refinances need sufficient equity unless you qualify for a high loan-to-value program.

You refinance for more than you owe and pocket the difference in cash. Most programs cap cash-out refinances at 80% loan-to-value on primary homes.

Most lenders want you to keep 15-20% equity after the HELOC is approved. You can borrow against your home as needed during the draw period.

HELOCs work like credit cards with variable rates and draw periods. Home equity loans give you a lump sum with fixed rates and set repayment terms.

Yes, FHA and conventional loans allow gift funds from family members. You'll need a gift letter stating the money doesn't require repayment.

Most loans cap total debt at 43-50% of gross monthly income. FHA and VA allow higher ratios with strong credit or significant reserves.

Not for most primary residence purchases. Investment properties and jumbo loans often require 2-12 months of reserves depending on the loan amount and property type.

You must wait 2-4 years after discharge depending on loan type and bankruptcy chapter. FHA allows purchases 2 years post-Chapter 7 with re-established credit.

No. Credit bureaus count all mortgage inquiries within 45 days as a single pull. Shop rates aggressively during that window without score impact.

Jumbo loans exceed conforming limits—currently $806,500 in Los Angeles County. They require stronger credit, larger down payments, and carry slightly higher rates than conforming loans.

FHA, VA, and USDA loans are assumable with lender approval. You'll still qualify based on income and credit, but you inherit the seller's interest rate.

Construction loans fund your build in stages as work completes. Most convert to permanent mortgages once construction finishes, avoiding double closing costs.

Bridge loans let you borrow against your current home's equity to buy the next property. You pay both mortgages briefly until your old home sells.

Yes. Foreign national loans require 20-40% down and accept foreign credit history. You don't need U.S. credit scores or a Social Security number.

Portfolio ARMs are held by the lender instead of sold to Fannie or Freddie. They offer flexible underwriting for complex income situations with adjustable rates.

Yes, lenders require proof of insurance before funding. Get quotes 30 days before closing and expect higher premiums in California wildfire zones.

Borrowers 62 and older can convert home equity to cash without monthly payments. The loan balance grows over time and comes due when you sell or pass away.

Rate locks last 15-60 days and protect you from increases while your loan processes. Lock when you're ready to commit, not during pre-approval.